Insurance giant Hiscox set to be hit with £142m virus bill as it faces legal action from firms claiming they were unfairly treated
Insurance giant Hiscox could be hit with a £142million bill from pandemic claims – but faces legal action after some firms said they were unfairly treated.
It expects to pay out to businesses forced to shut their doors or cancel events – and rival Beazley expects losses of £138million.
However Hiscox has come under fire from small businesses for refusing to pay claims made under its business interruption policies.
Hiscox expects to pay out to businesses forced to shut their doors or cancel events – and rival Beazley expects losses of £138m
The Hiscox Action Group, representing more than 180 firms says the insurer has issued ‘blanket’ rejections, knocking back thousands of legitimate claims.
Many shut when lockdown measures were put in place and are seeking to recoup losses.
But Hiscox claims their policies do not cover the pandemic, despite documents promising protection from an ‘occurrence of any human infectious or human contagion disease’.
Action group spokesman Daniel Duckett, who runs a patisserie in Belfast, said: ‘We need this extra support.
That is the reason I have been paying Hiscox for the past two years – it has the ability to help us and it should do the right thing.’
Hiscox said its small commercial package policies do not provide cover for measures taken in response to a pandemic.
It said: ‘A number of UK policyholders have disputed the application of their policy. Hiscox is determined to help provide greater certainty for customers.
As a priority it will work with the UK insurance industry, its regulators and its customers to seek means of expediting resolution through the range of independent mechanisms available.’